Condo insurance in Ontario

Condo insurance covers what your condo corporation’s master policy doesn’t: your unit’s interior, your belongings, and your personal liability. A standard Ontario policy typically includes:

• Personal property: furniture, electronics, clothing, and décor
• Unit improvements and betterments: upgrades to flooring, cabinetry, and fixtures
• Personal liability: if someone is injured in your unit or you damage another unit
• Loss assessment: your share of certain building-wide claims charged by the corporation
• Additional living expenses: temporary housing if a covered loss forces you out

Sewer backup, overland flood, and earthquake coverage are typically optional add-ons, not automatic.

They cover different things, and the gap between them is your responsibility. The master policy covers the building and shared spaces; your policy covers everything inside your unit.

• Master policy: the structure, hallways, elevators, roof, and other common elements
• Your condo policy: your belongings, interior upgrades, personal liability, and your share of certain shared losses

Without your own policy, you’d pay out of pocket for anything the master policy doesn’t cover, which is most of what’s inside your walls.

Loss assessment coverage pays your share when the condo corporation bills unit owners for a shared loss. This happens when damage to common areas exceeds the master policy’s limits, or when its deductible is passed on to owners after a major claim.

Master-policy deductibles on many Ontario buildings now reach tens of thousands of dollars, so a single shared claim can leave each owner facing a bill in the thousands. Loss assessment coverage is what stands between that bill and your savings, and it’s often a small addition to your premium.

In most cases yes, but it depends on the source:

• Sudden, accidental internal water, such as a burst pipe or appliance overflow inside your unit, is typically covered
• Sewer backup, water entering through drains or sumps, usually requires an added endorsement
• Overland flood, surface water entering from outside, is a separate optional coverage
• Water originating in a neighbour’s unit may involve their policy and the master policy, which is why the source matters

Water is one of the most common condo claims in Ontario, so reviewing both your policy and the master policy is worth doing.

It depends on fault and on the policies involved. Up to three policies can respond:

• Your condo policy: often the first to repair your unit and belongings, regardless of fault
• Your neighbour’s policy: may respond if they were negligent, sometimes through your insurer recovering costs from theirs
• The corporation’s master policy: applies if the water originated in a common element, like a shared pipe

Because fault is often disputed, your own policy is what gets your unit repaired quickly while the responsibility is sorted out.

Tell your broker what you’ve upgraded and its value, or it may not be fully covered. Improvements like new flooring, cabinetry, or fixtures often aren’t protected under a standard policy unless they’re declared.

This matters most when the master policy only insures original or builder-standard finishes; the difference between those and your upgrades is yours to insure through unit improvements and betterments coverage.

The most valuable add-ons for most Ontario condo owners are sewer backup and overland flood, since water is the most common claim. Others worth considering:

• Scheduled articles: full coverage for jewellery, art, or collections beyond standard limits
• Identity theft protection
• Increased loss assessment and additional living expense limits
• Equipment breakdown: for HVAC and major systems in your unit
• Earthquake: relevant mainly in Eastern Ontario and the Ottawa Valley

The right mix depends on your unit, your belongings, and your corporation’s master policy.

No, short-term rentals are not automatically covered. Renting your unit through a platform like Airbnb changes your risk, and a standard condo policy usually won’t respond to a guest-related loss.

You’ll typically need a specific endorsement or separate coverage. Renting without disclosing it can void a claim, so tell your advisor before you list, even for occasional stays. Check your condo corporation’s bylaws too, as many restrict or prohibit short-term rentals.

Yes, but with limits. Theft from a storage locker inside your condo building is typically covered:

• Lockers within the building: usually covered, though limits may be lower than for items inside your unit
• High-value items: may need additional or scheduled coverage
• Off-site or external storage: not always covered automatically

If you regularly store valuables outside your unit, have your advisor confirm the limits.

Condo insurance is generally affordable, often a few hundred dollars per year, though the exact cost depends on:

• Your unit’s size and location
• The value of your belongings
• Your condo corporation’s deductibles
• Your claims history and coverage choices

A broker can compare multiple insurers to balance coverage and cost.

Make sure everyone is safe, document the damage with photos or video, then contact your broker. Your advisor helps determine whether the loss falls under your policy or the corporation’s master policy, which is often the trickiest part of a condo claim, and works with the insurer to move it forward.